DOJ Launches Corporate Whistleblower Awards Pilot Program

The Department of Justice’s Criminal Division has initiated a Corporate Whistleblower Awards Pilot Program aimed at incentivizing well placed insiders (or individuals with detailed information) to come forward and expose corporate crime. Whistleblowers who provide original and truthful information about corporate misconduct leading to a successful recovery may qualify for a whistleblower award under this new program if there is a successful forfeiture exceeding $1 million.  Although outsiders are technically eligible, the program seems to mainly encourage insiders since the individual needs to have independent knowledge of the information and can’t cobble together a case from public information like some outside whistleblowers do using the False Claims Act. As with other whistleblower programs it is highly recommended to consult with some of the best whistleblower law firms before taking any action, as the program is nuanced and only with the protection of whistleblower lawyers will you enjoy the full benefits of potential anonymity.

Jason T. Brown, former Department of Justice – Special Agent and Legal Advisor with the FBI indicated, “This program addresses critical gaps that previously kept key whistleblowers silent. Without federal statutes like the False Claims Act or the SEC whistleblower program, individuals had little incentive to report corporate misconduct. This new program aims to change that and prevent widespread industry meltdowns.”

In addition to the forfeiture having to exceed $1 million, the program is deferential to the victims of the fraud first as they will need to be paid back before any whistleblower receives an award and the awards although up to 30% are considered discretionary – so one can expect some challenges at the back end of successful enforcement.

Although, if the program echoes the successes of other whistleblower programs it could be highly successful, and the DOJ will want to have its inaugural case have a big splash and probably handsomely reward the first successful case under the program to broadcast the program and encourage others to come forward. The initial program is slated for 3 years as a pilot at which point the DOJ has discretion to extend or modify it or cancel it altogether, so individuals with information that may qualify should come forward promptly.

With the use of a whistleblower law firm the individual may be able to stay anonymous from start to finish but is expected to fully cooperate with the investigation. If the hands of the cooperator are too dirty it may disqualify the individual from award eligibility. According to the corporate malfeasance program guidance, the information provided must pertain to one of the following areas to become eligible for a whistleblower reward:

1. Crimes involving financial institutions, including banks and cryptocurrency businesses.
2. Foreign corruption involving corporate misconduct, which includes violations of the Foreign Corrupt Practices Act (FCPA), the Foreign Extortion Prevention Act, and money laundering statutes related to foreign corruption and bribery.
3. Domestic corruption involving corporate misconduct.
4. Health care fraud schemes involving private insurance plans. Previously only Medicare Fraud, Medicaid Fraud, and Tricare Fraud were covered by the False Claims Act and systemic insurance fraud had no federal component to permit whistleblowers, although certain states like Illinois and California

The program is not supposed to supplant existing programs but augment them – so if you potentially could file under programs like FIRREA or the AML (Anti Money Laundering) Whistleblower Program, you are expected to do so, but will need to work with experienced whistleblower counsel about what’s covered in what program to ensure you file properly.

There is no better time than now to make a report under the Corporate Whistleblower Awards Pilot Program. If you believe you may have a claim related to any of the above areas, contact a whistleblower law firm today to discuss your potential rights.

Frequently Asked Questions

Could I be eligible for an award if I provide new information about an existing investigation?

Yes. You may qualify for an award if you provide original information about an ongoing investigation after the program’s effective date, and your information significantly contributes to a successful forfeiture.

Can more than one person provide information about the same scheme, and both receive an award?

Yes, provided each person’s information materially advances the investigation and leads to a successful forfeiture. Whistleblowers may be eligible for up to 30% of the government’s recovery.

What kinds of schemes should I report to the department?

The department is looking to address gaps in existing whistleblower programs and detect corporate crime in the following areas:

– Violations by financial institutions not covered by the Financial Crimes Enforcement Network whistleblower program, including obstruction of financial regulators, failure to register money transmitting businesses, and fraud against U.S. financial institutions.

– Foreign corruption schemes not covered by the Securities and Exchange Commission whistleblower program, including violations of the money laundering statutes, the Foreign Corrupt Practices Act, and the Foreign Extortion Prevention Act.

– Domestic corruption schemes involving the payment of bribes and kickbacks to public officials or employees.

– Federal health care offenses not covered by the Federal False Claims Act, such as fraud involving private insurers and fraud against patients. If you are unsure if your information can be used to submit a report, consult an attorney to discuss your options.

It is strongly recommended that you work with an experienced whistleblower attorney before filing anything to both maximize your chances of success, ensure you’re filing into the correct program, provide a buffer between you and the government and protect your rights as needed.

Can I get an award if I report a scheme that partially falls into another agency’s whistleblower program?

You might be eligible if the scheme falls partially under another agency’s program and partially under the Corporate Whistleblower Awards Pilot Program. However, if you qualify for an award from another program for the same information, you will not be eligible for the DOJ’s program. If the scheme only partially qualifies for another program, the Department will determine your eligibility for an award.

Can I receive an award if I report a healthcare fraud scheme that involves both federal healthcare programs?

The Department’s qui tam program incentivizes whistleblowers to report fraud against federal health care benefit programs. The Pilot Program addresses fraud schemes involving private or other non-public health care benefit programs. If the majority of claims are submitted to private or non-public health care programs, you may be eligible for the Pilot Program. However, awards are based only on forfeitures related to fraud on private or non-public health care programs. If the scheme also involves Medicare Fraud, Medicaid Fraud, and/or Tricare Fraud, you will have to file a separate False Claims Act complaint with a qui tam law firm.

Can I receive an award if I am involved in the criminal activity?

You will not be eligible if you meaningfully participated in the criminal conduct. However, if your involvement was minimal and you are considered “plainly among the least culpable,” you may still be eligible. Generally, the government will want to see how much the individual profited from the scheme, if at all.

Can I receive an award if I report to my company?

Yes, if you report internally to your company and then report to the Department within 120 days. However, it is strongly recommended that you do not report the matter directly to your own company because it may lead to your termination and the company may start to destroy evidence and proactively create a defense and thwart the investigation.

Is my submission confidential?

The Department will try not to publicly disclose information that could identify a whistleblower except as required by law. In cases in which a criminal prosecution goes into the discovery phase under Brady rules the corporate defendant may be entitled to find out the confidential information, however they can’t find out what even the government doesn’t know if the individual is cloaked in anonymity – so see the next FAQ about the corporate whistleblower anonymous protections. Also, information may be shared with other enforcement agencies if necessary for law enforcement purposes.

Can I submit information anonymously?

Yes, but you must be represented by an attorney, who must provide their contact information at the time of submission. Anonymity is not 100% guaranteed, but with a corporate whistleblower awards lawyer, you have an additional layer of protection.

Do I need a lawyer to submit information?

No, you can submit information without a lawyer, but you cannot submit information anonymously without one. It is best to consult an attorney before taking any action, as an experienced whistleblower attorney can help you avoid legal obstacles and frame the case in the best possible light.

If I submitted my information to another agency, am I eligible for an award from this program?

You can submit information to both this program and another agency’s whistleblower program. However, you will not be eligible for an award from this program if you would be eligible for an award from another program for the same information.

What should I do if my company or others retaliate against me for reporting to the Department of Justice?

If you experience retaliation, report it to the Department of Justice. Retaliation will be considered in assessing cooperation and may lead to enforcement actions.

You should consult a whistleblower law firm to understand your rights under the new whistleblower program and also to help insulate you from retaliation.